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WILLIAM TELL HOLDINGS LIMITED - Voluntary announcement

Release Date: 05/10/2012 17:45
Code(s): WTL     PDF:  
Wrap Text
Voluntary announcement

William Tell Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 2004/030045/06)
 Share code: WTL ISIN: ZAE000098133
 (“William Tell” or “the Company”)


VOLUNTARY ANNOUNCEMENT



It is with regret that Mr Barry Lok, the Executive Chairman and sole director of William Tell, hereby advises
shareholders that the Company’s main trading company and wholly-owned subsidiary, William Tell Industries
Proprietary Limited (“William Tell Industries”), ceased operations on Thursday, 4 October 2012 due to, inter
alia:
      - illiquidity and the inability to service commitments or continue trading;
      - the failure to secure loans and other financial restructuring over the past nine months; and
      - the calling up of a medium-term loan to the amount of R22 million by William Tell Industries’ bankers.

William Tell and the remaining subsidiaries within the William Tell group, namely:
     - ELB Ultrabord Proprietary Limited (“ELB Ultrabord”); and
     - Tellprop Proprietary Limited (“Tellprop”),
are at this time unaffected by the current situation within William Tell Industries.

ELB Ultrabord, which owns a disassembled plant with a book value of approximately R500 000, and
Tellprop, which owns a 5.3ha industrial property with a book cost of approximately R44 million and from
which William Tell Industries operated, are combined creditors of William Tell Industries to the sum of
approximately R108 million.

The loan in favour of William Tell Industries – which William Tell has called up – is not capable of being
serviced and as a result it has been resolved that the Company apply for the liquidation of William Tell
Industries.

There is a likelihood that during William Tell Industries’ liquidation, both ELB Ultrabord and Tellprop, who are
guarantors to the William Tell group’s bankers for monies advanced to William Tell Industries, may be called
on to make good any deficiency between the eventual proceeds from the liquidation of William Tell Industries
and the value of the medium-term loan to William Tell Industries which is secured by a Special Notarial Bond
over the particleboard plant.

Shareholders will be updated on further developments.


Johannesburg
5 October 2012


Designated Adviser
Merchantec Capital

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